1. The Imperial Bank of India, after nationalisation was given the name of:
(a) Reserve Bank of India
(b) Bank of India
(c) State Bank of India
(d) Indian Overseas Bank
2. Regional Rural Banks are designed to work in which of the following ideals?
(a) Work on basics of commercial banks
(b) Help the targetted groups
(c) Keep lending rates lower than cooperative institutions
(d) Work on innovative and adaptive ideals
3. If the cash-reserve ratio is lowered by the Central bank, what will be its effect on
credit creation?
(a) Decrease
(b) Increase
(c) No change
(d) None of these
4. Which of the following is not an asset held by commercial banks?
(a) Bills of exchange
(b) Current account deposits
(c) Credit balances with the Reserve Bank
(d) Money lent at short notice
5. The primary objective of Unit Trust of India is:
(a) to assist the industries in financial difficulties
(b) to diffuse the benefit of development among the masses
(c) to accumulate funds for public investment expenditure
(d) to promote the investment habit among those who have not been able to diversify
investment risk
6. Which of the following is now a punishable offence by a Bank Account holder ?
(a) If a cheque is not crossed
(b) If a post-dated cheque is issued
(c) If a cheque drawn by him is dishonoured for insufficiency of funds in his account
(d) Issuing a cheque without signature
7. Which of the following are the functions of the Central Bank of India?
1. Regulation of currency and flow of credit system
2. Maintaining exchange value of rupee
3. Formulating monetary policy of India
4. Supervisory powers over the indigenous bankers and leasing companies
(a) 1 and 3
(b) 1, 2 and 3
(c) 1, 2 and 4
(d) 1, 2, 3 and 4
8. Which of the following are under the purview of Industrial Development Bank of India?
1. Unit Trust of India
2. Life Insurance Corporation of India
3. Export-Import Bank
4. State Finance Corporation of India
(a) 1, 2 and 3
(b) 2, 3 and 4
(c) 1, 3 and4
(d) 1, 2 and 4
9. Which of the following constitute short-term sources of finance for small scale
industries?
1. Private money lenders
2. Loans by commercial banks
3. Credit Guarantee schemes
4. National Small Industries Corporation
(a) 1, 2 and 3
(b) 1 only
(c) 1, 2 and 4
(d) 1, 2, 3 and 4
10. Which of the following provides the largest part of the demand for loanable funds in
India?
(a) Farmers
(b) Private-house purchasers
(c) Corporate businesses
(d) Hire-purchase borrowers